Generally, policies and strategies of Nigerian government towards foreign direct investments are shaped by two principal objectives of desire for economic independence and the demand for economic development. Multi national corporations are expected to bring into Nigeria, foreign capital in the form of technical skills, entrepreneurship, technology and investment fund to boost economic activities thereby, rising the standard of living of Nigerian.

The main issues in this paper relates to understanding the effects and impact of foreign direct investments on the Nigerian economy as well as our ability to attract adequate amounts, sufficient enough to accelerate the pace of our economic growth and development. From related research and studies, it was revealed that multinational corporations are highly adaptive social agents and therefore, the degree to which they can help in improving economic activities through foreign direct investment will be heavily influenced by the policy choice of the host country.

Secondary data were collected for the period 1970 to 2005. In order to analyse the data, both econometric and statistical method were used. Tables were produced in order to create a visual impression of the dependence of Nigeria economy on that of donor countries such as Western Europe and North America. The economic regression model of ordinary least square was applied in evaluating the relationship between foreign direct investment and major economic indicators such as gross domestic product, gross fixed capital formation and index of industrial production. The model revealed a positive relationship between foreign direct investment and each of these variables, but that foreign direct investment has not contributed much to the growth and development of Nigeria. This is evident in reality of enormous repatriation of profits, dividends, contract fees, and interest payments on foreign loans.

The study thus suggest that in order to further improve the economic climate for foreign direct investments in Nigeria, the government must appreciate the fact that the basic element in any successful development strategy should be the encouragement of domestic investors first before going after foreign investors.

1.0INTRODUCTION

In order to seek the highest of return for capital, economists tend to favour the free flow of capital across national boarders. It is against this backdrop that multinational companies seek investment in foreign countries with reasonable risk. Nigeria is believed to be a high-risk market for investment because of factors such as bad governance, unstable macro economic policies, investment as a way out of Nigeria’s economic state of underdevelopment.

Since the enthronement of democracy in 1999, the government of Nigeria has taken a number of measures necessary to woo foreign investors into Nigeria. These measures includes the repeal of laws that are inimical to foreign investment growth, promulgation of investment law, various overseas trips for image laundry by the president, among others.

The need for foreign direct investment is born out of the underdeveloped nature of the Nigeria’s economy that essentially, hindered the pace of her economic development. Generally, policies and strategies of the Nigerian government towards foreign investments are shaped by two principal objective of the desire for economic independence and the demand for economic development. There are four basic requirements for economic development namely.

Without these components, economic and social development of the country would be a process lasting for many years. The provisions of these first three necessary components present problems for developing countries like...

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Published: June 30, 2012
Foreign Direct Investment and Economic Growth in Nigeria: An Analysis of the Endogenous Effects
Okon J. Umoh, 2Augustine O. Jacob and 1Chuku A. Chuku 1 Department of Economics, University of Uyo, Uyo, Nigeria 2 Heritage Polytechnic, Eket Akwa Ibom State, Nigeria
Abstract: This research endeavour set out to empirically investigate the relationship between foreign direct investment and economic growth inNigeria between 1970 and 2008. The paper makes the proposition that there is endogeniety i.e., bi-directional relationship between FDI and economic growth in Nigeria. Single and simultaneous equation systems are employed to examine if there is any sort of feed-back relationship between FDI and economic growth in Nigeria. The results obtained show that FDI and economic growth are jointly determined in Nigeria and there is positive feedback from FDI to growth and from growth to FDI. The overall policy implication of the result is that policies that attract more foreign direct investments to the economy, greater openness and increased private participation will need to be pursued and reinforced to ensure that the domestic economy captures greater spillovers from FDI inflows and attains higher economic growth rates. Keywords: Economic growth, endogeniety,...

...An analysis of Foreign Direct Investment in Nigeria: The Fate of Nigeria’s
Agricultural Sector.
1Ogbanje, E C, 2Okwu, O. J and 3Saror, S.F.
ogbanjece@yahoo.com; +2348036350197
1Department of Agricultural Management, University of Agriculture, Makurdi
2Department of Extension and Communication, University of Agriculture, Makurdi
3Institute of Food Security, University of Agriculture, Makurdi
Received 11th June, 2010, Accepted 19th December, 2010
Abstract
The study analysed the fate of the agricultural sector in relation to foreign direct investment
(FDI) in Nigeria. Data for the study were obtained from the Central Bank of Nigeria’s
statistical bulletin from 1970 to 2007. Findings revealed that of the seven sectors into which
FDI was classified, agricultural sector got the least average net flow of investment
(N553.6132), while manufacturing and processing sector had the highest mean net investment
flow (N28,267.00) as depicted in the Duncan Multiple Range Test. The Least Square
Difference of the Post Hoc Test showed that mean difference in net FDI between agricultural
sector and manufacturing and processing sector (N-27,713.40), mining and quarrying sector
(N-25,754.30), and miscellaneous (N-19,490.80) were significant at 0.01 level of probability.
One-way ANOVA revealed that the difference in net flow of FDI to the sectors under study was
significant at 0.01 level of...

...Determinants of Foreign Direct Investment in Nigeria: An Empirical Analysis
Obida Gobna Wafureα Abu, NurudeenΩ
Abstract: The role of foreign direct investment in the development of Nigerian economy cannot be over emphasized. Foreign direct investment provides capital for investment, it enhances job creation and managerial skills, and possibly technology transfer. This paper investigates the determinants of foreign direct investment in Nigeria. The error correction technique was employed to analyze the relationship between foreign direct investment and its determinants. The results reveal that the market size of the host country, deregulation, political instability, and exchange rate depreciation are the main determinants of foreign direct investment in Nigeria. The authors recommend the following policies among others: expansion of the country’s GDP via production incentives; further deregulation of the economy through privatization and reduction of government interference in economic activities; strengthening of the political institutions to sustain the ongoing democratic process; gradual depreciation of the exchange rate; and increased investment in the development of the nation’s infrastructure.
GJHSS Classification (FOR) 140103, 140202, 1502 & 1504
Keywords: Foreign direct investment, deregulation, unit root, co integration.
I.
INTRODUCTION
oreign direct investment (FDI) not only provides developing...

...﻿Introduction
When investigating the impact of Foreign Direct Investment (FDI) for host countries, most research focuses on the effect of FDI on economic growth. FDI can be defined as cross-border expenditures to acquire or expand corporate control of productive assets (Froot, 1993). It is a key element in the rapidly evolving international integration. It may help the competitive position of both the recipient (host) and the investing (home) economy, by transferring know-how and technologies and under the right policy it can help the development of the host economy (OECD, 2008). According to the literature the impact of FDI is expected to be growth enhancing (Blomstrom et al, 1996; Feenstra and Markusen, 1994; Bengoa and Sanchez-Robles, 2003), however this relationship is far from conclusive and depends on the host country’s economic, institutional and technological conditions (Li and Liu, 2005; Hansen and Rand, 2006).
In the last few years a main focus of research has been the impact of FDI in developing countries and even more the BRIC (Brazil, Russia, India and China) countries. These economies are characterised by expanding middle classes, abundant natural resources, healthy trade surpluses, and market reforms aiming for global commerce (Dillow, 2014). While these countries still remain important for development studies, a new group of economies is starting to play an important role, one of them...

...﻿1.0 Introduction
FDI refers to is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in the country. Foreign Direct Investment which is a passive investment which is passive investment in the securities of another country as stock and bonds. Foreign direct investment occurs when a firm invests directly in facilities to produce and /or market a product in a foreign country.FDI plays a dominant role in the economics of Bangladesh through accelerating Gross Domestic Product(GDP),export and domestic investment followed by overall economic growth. The objective of this term paper is to find out the major effect of FDI on industrial productivity of Bangladesh. Foreign direct investment (FDI) enables a capital poor country like Bangladesh to build up capital, avoid threat to unemployment develop productive capacity. Conventional wisdoms have it that firms with foreign equity tend to be more productive. This could be due to the firm specific tangible assets such as exclusive technology and product designs, or the intangible know-how embodied in foreign equity such as marketing, networking and sourcing. Such assets may be more readily available in big multinational corporations (MNC). As such, being part of MNCs allow the local subsidiaries...

...﻿FDI
 Have an understanding of the patterns and distribution of FDI flows in the global economy
 Have an understanding of the major explanations of determinants of FDI and the reasons for the resurgence of FDI in the global economy after 1985
 have an awareness of the role of multinationals in improving competitiveness of domestic firms and other impacts of FDI
 Have an awareness of role of FDI promotional policies
A Foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. Foreign direct investment (FDI) is a key element in international economic integration.
It creates direct, stable and long-lasting links between economies. It encourages the transfer of technology and know-how between countries, and allows the host economy to promote its products more widely in international markets. FDI is also an additional source of funding for investment and, under the right policy environment, it can be an important vehicle for development.
Decline in Manufacturing in TRIAD and its shift to Non-Triad
M&A emerge as major form of FDI. M&A Activity –rising again after financial crisis
Have an understanding of the major explanations of determinants of FDI and the reasons for the resurgence of FDI in the global...

...investment decision.
The IMF Balance of Payments Manual defines Foreign Direct Investment (FDI) as ‘the objective of a resident entity in one economy obtaining a lasting interest in an enterprise in another economy’ (IMF, Balance of Payments Manual, 5th edition, 1993, p.86). In reality this investment usually involves some degree of ownership but there is no universally agreed ownership requirement (A. Harrison, Business Environment in a global context 2nd edition 2014, p.228). FDI can occur through several different routes such as a joint venture with a foreign partner (such as Jaguar Land Rover and Chery Automobile1), a foreign acquisition or takeover, or even the purchase of facilities for expansion without any transfer of equity ownership2. This essay will first explain some factors that influence business decisions in terms of location and examine how different locations offer different pros and cons. Once we have established briefly how the internal and external environment can affect a business location decision we will look at a specific corporation who has recently invested in London South East of England.
Perhaps the most fundamental motive of a FDI is for an enterprise to achieve its corporate aims, contained within their mission statements. These can vary depending upon the industry sector it is in as well as the product/service offered. General primary motives for FDI often include profitability (the...